I. Formula Overview
[Potential Loss from Futures Open Orders]
If a buy order is placed above the mark price, or a sell order below the mark price, the system considers this "potential order loss" when calculating both the initial margin ratio and the maintenance margin ratio.
Potential loss from an open USDT-M futures order = Number of contracts * Face value per contract * max (0, (Order price - Mark price) * Order direction)
Note: The order direction is +1 for long orders; -1 for short orders.
[Account Margin Equity]
Potential order loss refers to the potential loss from open orders.
Total loss of open orders = Σ Potential order loss per crypto * Last price
Unrealized PnL = Position direction * (Mark price - Average entry price) * Number of contracts * Face value per contract
Note: The position direction is +1 for long positions; -1 for short positions.
Margin asset = Σ Collateral per crypto = Σ (Net asset of involved cryptos * Index price * Collateral rate + Net liability * Index price)
Note: Unrealized PnL is included in the margin asset. If positive, it's counted as a net asset of USDT; if negative, it's counted as a net liability of USDT.
Account margin equity = Margin asset - Total loss of open orders
[Account Initial Margin Ratio]
Account initial margin = Σ Initial margin across all assets = Σ (Position initial margin + Order initial margin)
Position initial margin = Position size * Face value per contract * Mark price * Initial margin rate
Order initial margin = Order size * Face value per contract * Estimated execution price * (Initial margin rate + Prime-based taker fee rate)
Notes:
- Initial margin rate = 1 / Leverage
- Position initial margin does not involve the Prime-based taker fee rate
- An additional taker fee based on your Prime level will be pre-frozen as part of the order's initial margin before opening a position.
- Initial margin is not required for reduce-only orders.
Initial margin in USDT = Initial margin in USDT-margined futures * USDT's index price
Account initial margin ratio = Account initial margin / Account margin equity
[Account Maintenance Margin Ratio]
Account maintenance margin = Σ Maintenance margin across all assets = Σ (Position maintenance margin + Order maintenance margin)
Position maintenance margin = Position size * Face value per contract * Mark price * (Maintenance margin rate + Prime-based taker fee rate)
Order maintenance margin = Order size * Face value per contract * Mark price * (Maintenance margin rate + Prime-based taker fee rate)
Notes:
• Both position maintenance margin and order maintenance margin require an additional Prime-based taker fee rate on top of the maintenance margin rate (to cover fees in the event of forced liquidation).
• Maintenance margin is not required for reduce-only orders.
Maintenance margin in USDT = Maintenance margin in USDT-margined futures * USDT's index price
Account maintenance margin ratio = Account maintenance margin / Account margin equity
[Account Available Margin]
Account available margin = max (0, Account margin equity - Account initial margin)
II. Examples
| Trading Pair/Asset |
BTCUSDT |
ETHUSDT |
USDT |
| Wallet Balance |
0.001 |
0.05 |
0 |
| Equity |
0.001 |
0.05 |
0 |
| Last Price |
85,200 |
1,600 |
1 |
| Mark Price |
85,202 |
1,602 |
1 |
| Index Price |
85,205 |
1,605 |
1 |
| Asset Ratio |
94% |
94% |
100% |
| Maintenance Margin Ratio |
1.25% |
2% |
/ |
| Prime-based Taker Fee Rate |
0.05% |
0.05% |
/ |
Scenario 1
Assume you have no open positions and no open orders in your account.
- Account Margin Equity
Potential Loss for Open Orders: N/A (no open orders)
Unrealized PnL: N/A (no open positions)
Margin asset = 0.001 * 85,205 * 94% + 0.05 * 1,605 * 94% = 155.5277 Note: Margin asset = Σ Collateral per crypto = Σ (Net asset of involved cryptos * Index price * Collateral rate + Net liability * Index price)
Account margin equity = 155.5277 - 0 = 155.5277 Note: Account margin equity = Margin asset - Total loss of open orders
- Account Initial Margin Ratio
Initial Margin Ratio: N/A (no margin occupied)
- Account Maintenance Margin Ratio
Maintenance Margin Ratio: N/A (no margin occupied)
- Account Available Margin
Account available margin = max (0, 155.5277 - 0) = 155.5277 Note: Account available margin = max (0, Account margin equity - Account initial margin)
Scenario 2
Assume you currently have no open positions, but an open USDT-margined Futures long order of 0.001 BTC, placed at a price of 84,500 with 10x leverage.
- Account Margin Equity
Potential loss from an open USDT-M futures order: 0 (= 1 * 0.001 * max (0, (84,500 - 85,202)) * 1 = 1 * 0.001 * max (0, -702) * 1 = 1 * 0.001 * 0 * 1) Note: Potential loss from an open USDT-M futures order = Number of contracts * Face value per contract * max (0, (Order price - Mark price) * Order direction)
Total loss of open orders = 0 * 85,200 = 0 Note: Total loss of open orders = Σ Potential order loss per crypto * Last price
Unrealized PnL: N/A (no open positions)
Margin asset = 0.001 * 85,205 * 94% + 0.05 * 1,605 * 94% = 155.5277 Note: Margin asset = Σ Collateral per crypto = Σ (Net asset of involved cryptos * Index price * Collateral rate + Net liability * Index price)
Account margin equity = 155.5277 - 0 = 155.5277 Note: Account margin equity = Margin asset - Total loss of open orders
- Account Initial Margin Ratio
Initial margin includes position initial margin and order initial margin. Since you have an open order but no positions, only the order initial margin needs to be calculated.
Order initial margin = 1 * 0.001 * 84,500 * (1/10 + 0.05%) = 1 * 0.001 * 84,500 × 0.1005 = 8.49225 Note: Order initial margin = Order size * Face value per contract * Estimated execution price * (Initial margin rate + Prime-based taker fee rate)
Initial margin in USDT = 8.49225 × 1 = 8.49225 Note: Initial margin in USDT = Initial margin in USDT-margined futures * USDT's index price
Account initial margin ratio = 8.49225 / 155.5277 = 5.460% Note: Account initial margin ratio = Account initial margin / Account margin equity
- Account Maintenance Margin Ratio
Since you have an open order but no positions, only the order's maintenance margin needs to be calculated.
Order maintenance margin = 1 * 0.001 * 85,202 * (1.25% + 0.05%) = 1 * 0.001 * 85,202 * 1.30% = 1.1076 Note: Order maintenance margin = Order size * Face value per contract * Mark price * (Maintenance margin rate + Prime-based taker fee rate)
Account maintenance margin ratio = 1.1076 / 155.5277 = 0.7122% Note: Account maintenance margin ratio = Account maintenance margin / Account margin equity
- Account Available Margin
Account available margin = max (0, 155.5277 - 8.49225) = 147.0355 Note: Account available margin = max (0, Account margin equity - Account initial margin)
Scenario 3
Assume you currently have no open positions, but an open USDT-margined Futures long order of 0.001 BTC, placed at a price of 85,203 with 10x leverage.
- Account Margin Equity
Potential loss from an open USDT-M futures order: 0.001 = 1 * 0.001 * max (0, (85,203-85,202)) * 1 = 1 * 0.001 * max (0,1) * 1 = 1 * 0.001 * 1 * 1 Note: Potential loss from an open USDT-M futures order = Number of contracts * Face value per contract * max (0, (Order price - Mark price) * Order direction)
Total loss of open orders = 0.001 * 85,200 = 85.2 Note: Total loss of open orders = Σ Potential order loss per crypto * Last price
Unrealized PnL: N/A (no open positions)
Margin asset = 0.001 * 85,205 * 94% + 0.05 * 1,605 * 94% = 155.5277 Note: Margin asset = Σ Collateral per crypto = Σ (Net asset of involved cryptos * Index price * Collateral rate + Net liability * Index price)
Account margin equity = 155.5277 - 85.2 = 70.3277 Note: Account margin equity = Margin asset - Total loss of open orders
- Account Initial Margin Ratio
Initial margin includes position initial margin and order initial margin. Since you have an open order but no positions, only the order initial margin needs to be calculated.
Order initial margin = 1 * 0.001 * 85,203 * (1/10 + 0.05%) = 1 * 0.001 * 85,203 * 0.1005 = 8.5629015 Note: Order initial margin = Order size * Face value per contract * Estimated execution price * (Initial margin rate + Prime-based taker fee rate)
Initial margin in USDT = 8.5629015 * 1 = 8.5629015 Note: Initial margin in USDT = Initial margin in USDT-margined futures * USDT's index price
Account initial margin ratio = 8.5629015 / 70.3277 = 12.176% Note: Account initial margin ratio = Account initial margin / Account margin equity
- Account Maintenance Margin Ratio
Since you have an open order but no positions, only the order's maintenance margin needs to be calculated.
Order maintenance margin = 1 * 0.001 * 85,202 * (1.25% + 0.05%) = 1.1076 Note: Order maintenance margin = Order size * Face value per contract * Mark price * (Maintenance margin rate + Prime-based taker fee rate)
Account maintenance margin ratio = 1.1076 / 70.3277 = 1.5749% Note: Account maintenance margin ratio = Account maintenance margin / Account margin equity
- Account Available Margin
Account available margin = max (0, 70.3277 - 8.5629015) = 61.7648 Note: Account available margin = max (0, Account margin equity - Account initial margin)
Scenario 4
Assume you have no open orders in your account, but have an open position as follows: A long BTC position, with an average entry price of 84,000, a quantity of 0.001 BTC, and leverage of 10x.
- Account Margin Equity
Potential Loss for Open Orders: N/A (no open orders)
Unrealized PnL = 1 * 1 * 0.001 * (85,202 - 84,000) = 1.202 Note: Unrealized PnL = Position direction * (Mark price - Average entry price) * Number of contracts * Face value per contract
Margin asset = 0.001 * 85,205 * 94% + 0.05 * 1,605 * 94% + 1.202 * 1 * 100% = 156.7297 Note: Margin asset = Σ Collateral per crypto = Σ (Net asset of involved cryptos * Index price * Collateral rate + Net liability * Index price)
Account margin equity = 156.7297 - 0 = 156.7297 Note: Account margin equity = Margin asset - Total loss of open orders
- Account Initial Margin Ratio
Initial margin includes position initial margin and order initial margin. Since you have an open position but no orders, only the position initial margin needs to be calculated.
Position initial margin = 1 * 0.001 * 85,202 * (1/10) = 8.5202 Note: Position initial margin = Position size * Face value per contract * Mark price * Initial margin rate
(Position initial margin does not involve the Prime-based taker fee rate)
Initial margin in USDT = 8.5202 * 1 = 8.5202 Note: Initial margin in USDT = Initial margin in USDT-margined futures * USDT's index price
Account initial margin ratio = 8.5202 / 156.7297 = 5.436% Note: Account initial margin ratio = Account initial margin / Account margin equity
- Account Maintenance Margin Ratio
Position maintenance margin = 1 * 0.001 * 85,202 * (1.25% + 0.05%) = 1 * 0.001 * 85,202 * 1.30% = 1.1076 Note: Position maintenance margin = Position size * Face value per contract * Mark price * (Maintenance margin rate + Prime-based taker fee rate)
Account maintenance margin ratio = 1.1076 / 156.7297 = 0.7066% Note: Account maintenance margin ratio = Account maintenance margin / Account margin equity
- Account Available Margin
Account available margin = max (0, 156.7297-8.5202) = 148.2095 Note: Account available margin = max (0, Account margin equity - Account initial margin)
Scenario 5
Assume you have a long BTC position, with an average entry price of 84,000, a quantity of 0.001 BTC, and leverage of 10x.Meanwhile, you also have an open USDT-margined Futures long order of 0.001 BTC, placed at a price of 84,500 with 10x leverage.
- Account Margin Equity
Potential loss from an open USDT-M futures order: 0 = 1 * 0.001 * max (0, (84,500 - 85,202)) * 1 = 1 * 0.001 * max (0, -702) * 1 = 1 * 0.001 * 0 * 1 Note: Potential loss from an open USDT-M futures order = Number of contracts * Face value per contract * max (0, (Order price - Mark price) * Order direction)
Total loss of open orders = 0 * 85,200 = 0 Note: Total loss of open orders = Σ Potential order loss per crypto * Last price
Unrealized PnL = 1 * 1 * 0.001 * (85,202 - 84,000) = 1.202 Note: Unrealized PnL = Position direction * (Mark price - Average entry price) * Number of contracts * Face value per contract
Margin asset = 0.001 * 85,205 * 94% + 0.05 * 1,605 * 94% + 1.202 * 1 * 100% = 156.7297 Note: Margin asset = Σ Collateral per crypto = Σ (Net asset of involved cryptos * Index price * Collateral rate + Net liability * Index price)
Account margin equity = 156.7297 - 0 = 156.7297 Note: Account margin equity = Margin asset - Total loss of open orders
- Account Initial Margin Ratio
Initial margin includes position initial margin and order initial margin. Since you have a position and an order, both the position initial margin and order initial margin need to be calculated.
Account initial margin = Position initial margin + Order initial margin
= (Position size * Face value per contract * Mark price * Initial margin rate) + (Order size * Face value per contract * Estimated execution price * (Initial margin rate + Prime-based taker fee rate))
= (1 * 0.001 * 85,202 * 1/10) + (1 * 0.001 * 84,500 * (1/10 + 0.05%))
= 8.5202 + 8.49225
= 17.01245
Account initial margin ratio = 17.01245 / 156.7297 = 10.855% Note: Account initial margin ratio = Account initial margin / Account margin equity
- Account Maintenance Margin Ratio
Since you have an open order and a position, both the order's and the position's maintenance margin need to be calculated.
Account maintenance margin = Position maintenance margin + Order maintenance margin
= Position size * Face value per contract * Mark price * (Maintenance margin rate + Prime-based taker fee rate) + Order size * Face value per contract * Mark price * (Maintenance margin rate + Prime-based taker fee rate)
= 1 * 0.001 * 85,202 * (1.25% + 0.05%) + 1 * 0.001 * 85,202 * (1.25% + 0.05%)
= 1.1076 + 1.1076
= 2.2152
Account maintenance margin ratio = 2.2152 / 156.7297 = 1.4134% Note: Account maintenance margin ratio = Account maintenance margin / Account margin equity
- Account Available Margin
Account available margin = max (0, 156.7297 - 17.01245) = 139.7173 Note: Account available margin = max (0, Account margin equity - Account initial margin)
Scenario 6
Assume you have a long BTC position, with an average entry price of 84,000, a quantity of 0.001 BTC, and leverage of 10x.Meanwhile, you also have an open USDT-margined Futures long order of 0.001 BTC, placed at a price of 85,203 with 10x leverage.
- Account Margin Equity
Potential loss from an open USDT-M futures order: 0.001 = 1 * 0.001 * max (0, (85,203 - 85,202)) * 1 = 1 * 0.001 * max (0, 1) * 1 = 1 * 0.001 * 1 * 1 Note: Potential loss from an open USDT-M futures order = Number of contracts * Face value per contract * max (0, (Order price - Mark price) * Order direction)
Total loss of open orders = 0.001 * 85,200 = 85.2 Note: Total loss of open orders = Σ Potential order loss per crypto * Last price
Unrealized PnL = 1 * 1 * 0.001 * (85,202 - 84,000) = 1.202 Note: Unrealized PnL = Position direction * (Mark price - Average entry price) * Number of contracts * Face value per contract
Margin asset = 0.001 * 85,205 * 94% + 0.05 * 1,605 * 94% + 1.202 * 1 * 100% = 156.7297 Note: Margin asset = Σ Collateral per crypto = Σ (Net asset of involved cryptos * Index price * Collateral rate + Net liability * Index price)
Account margin equity = 156.7297 - 85.2 = 71.5297 Note: Account margin equity = Margin asset - Total loss of open orders
- Account Initial Margin Ratio
Initial margin includes position initial margin and order initial margin. Since you have a position and an order, both the position initial margin and order initial margin need to be calculated.
Account initial margin = Position initial margin + Order initial margin
= (Position size * Face value per contract * Mark price * Initial margin rate) + (Order size * Face value per contract * Estimated execution price * (Initial margin rate + Prime-based taker fee rate))
= (1 * 0.001 * 85,202 * 1/10) + (1 * 0.001 × 85,203 * (1/10 + 0.05%))
= 8.5202 + 8.5629015
= 17.0831015
Account initial margin ratio = 17.0831015 / 71.5297 = 23.882% Note: Account initial margin ratio = Account initial margin / Account margin equity
- Account Maintenance Margin Ratio
Since you have an open order and a position, both the order's and the position's maintenance margin need to be calculated.
Account maintenance margin = Position maintenance margin + Order maintenance margin
= Position size * Face value per contract * Mark price * (Maintenance margin rate + Prime-based taker fee rate) + Order size * Face value per contract * Mark price * (Maintenance margin rate + Prime-based taker fee rate)
= 1 * 0.001 * 85,202 * (1.25% + 0.05%) + 1 * 0.001 * 85,202 * (1.25% + 0.05%)
= 1.1076 + 1.1076
= 2.2152
Account maintenance margin ratio = 2.2152 / 71.5297 = 3.0969% Note: Account maintenance margin ratio = Account maintenance margin / Account margin equity
- Account Available Margin
Account available margin = max（0，71.5297 - 17.0831015）= 54.4466 Note: Account available margin = max (0, Account margin equity - Account initial margin)
III. Notes
1. Regarding trading fee rates
- Order Initial Margin: An additional taker fee based on your Prime level on top of initial margin rate will be pre-frozen as part of the order's initial margin before opening a position.
- Position Maintenance Margin/Order Maintenance Margin: An additional Prime-based taker fee rate on top of both maintenance margin rates is required (to cover fees in the event of forced liquidation).
- Position Initial Margin: It does not pre-freeze trading fees.
- Reduce-Only Orders: Initial margin and maintenance margin are not required.
2. Regarding estimated execution price
Estimated execution price will be determined by referencing both the best bid/ask price in the order book and the risk control protection price. The actual price shall be subject to what is displayed on the order placement page.
3. Regarding fee rate principles
- For an existing order, the estimated fee for opening a position is frozen based on the applicable Prime-based taker fee rate at the time the order was placed. For a new order, the estimated opening fee is frozen based on the latest applicable Prime-based taker fee rate at the time the order is placed. The actual trading fee is charged based on the platform's fee rate at the time of execution.
- The Prime-based fee rate at the time of opening a position is used as the final fee rate when the position is liquidated, even if the rate changes at the time of liquidation.
